Azerbaijan to Realize First Payment on Subscription for Black Sea Trade & Development Bank Stakes by End of 2009

Business Materials 12 October 2008 12:50 (UTC +04:00)

Azerbaijan, Baku, 12 October / Trend corr. I.Khalilova / The Azerbaijani Government intends to realize the first payment at 9mln SDR amount for possession of additional package of shares of the Black Sea Trade & Development Bank (BSTDB), as well as in connection with doubling of bank-stock, the Azerbaijani Ministry of Economic Development said.

Azerbaijan's shares at the bank capital rose from 2 to 5% at the decision of the BSTDB Board of Managers. The stated capital of the Black Sea Bank will triple and reach to 3bln SDR ($4.5lbn), as well as joint stock will double and amount to 2bln SDR.

In accordance with the bank's experience, shareholders should pay 30% of new issue of shares. At present Azerbaijan possesses 100,000 shares at 100mln SDR cost and 80,000 shares of them were included in property of the country after rise of share holding and capital of the BSTDB.

A total of 10% of shares are paid from 30% of the paid stakes as one-time payment. This payment should finish in 2010 and the rest 20% - within eight years. Azerbaijan should pay the first 10% of the additional package at 30mln SDR cost by the end of 2009 in connection with rise of share holdings. Under the fixed schedule, payment of 10% will finish in 2010 in connection with rise of bank capital.

As a result of new subscription for distribution, the BSTDB's stakes will be allotted amongst shareholders as following: Greece, Russia and Turkey remain huge shareholders of the bank with 16.5% of shares for each, Romania possesses 14%, Bulgaria and Ukraine - 13.5% for each, Azerbaijan - 5%, Albania - 2%, Armenia and Moldova - 1% for each and Georgia - 0.5%.

Shareholders fully supported the bank and its mission to advance regional cooperation and economic development in member-countries. They confirmed strategic obligation to expand membership of the bank through involvement of new regional participants, as well as internationally famous banks and financial institutions.

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